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Benefits of Blockchain in Food Supply Chains

By Tanzila Shabir posted Wed June 07, 2023 10:09 AM

Food supply chain management

source: Image by brgfx on Freepik


Several industrial sectors have utilized blockchain, including banking and financial services, healthcare and hospital automation, government sectors, and the global supply chain. Thanks to inventors looking for new ways to use technology in the food business and beyond. 


Some of the world's leading technology corporations have already begun to apply technology to the food chain, while others are attempting to implement such advanced and secure digital systems. Consequently, there was an increase in market demand for blockchain development and blockchain developers. 


And its application in the restaurant industry is increasing the creation of food delivery applications and the demand for Food Delivering app developers in software development firms.


How blockchain is transforming supply chains


Let's say you go to the supermarket to buy some fruit. You purchase the fruit because it seems to be in good shape, but can consumers be sure of the origin of their fruit or whether it was contaminated?

Everybody wants to be sure that the food they buy is safe, whether it's fruit or anything else. 


However, what if you could quickly access information about the fruit recorded on the blockchain and learn where it was produced, kept, and examined by scanning its barcode? The location of the fruit's origin is the first information stored in this decentralized digital transaction ledger. It could even contain the name of the specific farm.

Consumers and retailers still rarely inquire about the origins of food products, and the food industry is dealing with several issues due to inefficiencies in the food supply chain, so the current supply chain process is failing to guarantee food safety at all points.


Blockchain, a novel distributed ledger technology, can increase food safety by combining various stakeholders, including farmers, processors, retailers, and consumers.


Consumers, delivery workers, retailers, and food and beverage corporations might all have access to a transparent and immutable transaction history.


What are the benefits of blockchain in the supply chain?


Blockchain technology has the ability to fundamentally alter supply chains in the food business. Blockchain technology has the ability to increase supply chain transparency while simultaneously reducing expenses and risk factors. In particular, blockchain supply chain advancements might offer the following major advantages:


Traceability and transparency


Global supply chains are getting more complicated as a consequence of changing customer preferences, increasing regulatory constraints, and increased global competition, food safety requirements are rising, and more trust difficulties are forming. Companies may employ blockchain technology to offer comprehensive traceability and quality assurance from the point of origin to the point of sale, allowing them to deliver the product diversity that consumers want while simultaneously providing the security essential to develop confidence.


Blockchain is a decentralized database that promotes integrity and transparency. Each partner is in charge of uploading the data and information related to their products. Accurate digital data gathering improves partner responsibility and confidence.


With the use of blockchain technology, product changes can be done quickly and you can view a product's location, manufacturing process, and delivery date all on one platform.


With the help of blockchain technology, consumers may learn more about the preservation methods employed as well as the ethics of any raw materials sourced. Blockchain solutions may become more popular as customers become more concerned about moral sourcing and manufacturing.


Food safety & quality


Experts believe that around 15% of all food sold today is fake. Given the immense economic potential, this industry has a lot of illegal energy. Incorrect weight claims, relabeling expired items, or labeling ordinary foods as organic are just a few examples, especially when the danger of being a victim of this fraud has been minimal thus far.


The producers of the brand bear the expense of the harm. They do not just lose up to 13 billion euros annually. Even worse, customers risk losing confidence and their health if damage happens.


Blockchain-powered track-and-trace systems offer the transparency needed to manage supply chains properly. They enable complete traceability of all food and beverage components and efficiently contribute to fulfilling a reliable brand's promise.


Increased efficiency

The automated tracking of product activities along the supply chain is possible using blockchain technology. Blockchain automates every stage of a product's path through the supply chain, drastically reducing the risk of human error. 

Logging digitization reduces administrative effort and increases data tracking consistency because all data is transferred to the cloud. You don't have to try to connect with your partners to receive the information you need; simply sign on to the blockchain and download it quickly. Everything about the product is centralized, making communication and operations easier. 

Blockchain is also scalable and accessible worldwide. This indicates that the technology is capable of facilitating instantaneous communication and cooperation throughout the globe.



Blockchain technology is built using secure "blocks". These are copies of the document that have been connected to earlier blocks and have been chronologically archived. Because blockchains are so difficult to hack, there are fewer chances of fraud or forgeries. Leading financial organizations, in fact, employ blockchain to securely send data.

The blockchain's security improves the validity and credibility of businesses. Misconduct in the supply chain is considerably minimized, lowering the chance of costly and negative public relations risks. Blockchain is a fantastic method for protecting your supply chain data from cyberattacks.

Streamlined decision-making

In the present global food supply chain, decision-making is frequently fragmented as a result of industry silos. Blockchain helps all stakeholders make more efficient decisions by giving them information about what's occurring in the supply chain.

Waste reduction 

By providing stakeholders with end-to-end transparency across the supply chain, blockchain may help them swiftly identify and address issues (including incorrect storage, temperature fluctuations, and mismanagement) and, as a consequence, minimize food waste.

Greater customer satisfaction 

In the present siloed food supply chain, a product's history is frequently unclear, as in the case of seafood. Many consumers, therefore, have a low level of confidence in the information found on food packaging.